Marketing Principles: New Product Development at Tesco PLC

Desklib provides past papers and solved assignments. This report analyzes Tesco's organic product launch.

Introduction to Marketing
Launch of a new product

Table of Content
• Introduction
• Overview: Tesco Plc
• Reason to select Tesco
• New product development
• Segmentation and customer profile creation
• Impact of marketing campaign and promotion: Marketing Mix
• Marketing Campaign: Marketing deliveries
• Strategies for marketing campaign
• Launch Stages
• Findings
• Recommendations
• Conclusion

Introduction
• New product is anything which can be offered to the market to
satisfy the needs and wants.
• New product development includes the various process of
modification and developments.
• This study focuses on the process of new product development in
a company.
• For the discussion, Tesco Plc operating in retail industry is
selected.

Overview: Tesco Plc
• Tesco is famous company dealing with food chain and
international merchandise,
• The company has headquarter in Hertfordshire of
England and founded in 1919,
• It is one of the largest company in retail industry,
• The company is dealing with 35,000 products along with
different brands

New product development
• New product-
 Tesco is dealing with the food
chain in the market.
 So, new product development for
Tesco is organic food.
 Customers are now very health
conscious so organic food is
selected as new product.
 Company would develop the
product by its own as outsourcing
of the products would be very
costly.
• Theoretical framework –
• The process of new product
development includes some
factors-
 Idea generation,
 Idea screening,
 Test Market,
 Launch the product

Segmentation and customer profile
creation
• Market segmentation and target customers-
 Geographic Segmentation- Division of
market is country and subdivisions would be
cities and local markets of UK.
 Demographic Segmentation- Men, Women
and children of all ages based on their
requirements
 Psychographic Segmentation- Health
conscious customers who prefer quality food
products
 Behavioral Segmentation – Customers who
are willing to pay for organic and health food

Impact of marketing campaign and
promotion: Marketing Mix
• Product-
 Tesco is developing new organic products including
fruits and vegetables, grains, nuts and seeds, dairy
products and eggs.
 Products would be fit on the requirements of
customers.
• Prices-
 Low prices of the products would be used without
compromising quality,
 Company would keep flexible prices for the products

Continue…
• Place-
 Tesco would use superstores, online platform and other platforms to sale the
organic food.
 Company would open various shops of organic food in countries i.e. Thailand,
Ireland, England and other countries.
• Promotion-
 Promotions would be done by the advertisements, promotional discounts, and
point of sales strategies.
 Various tools of promotional activities i.e. PR, Sales promotions, social media
and personal selling would be used.

Marketing Campaign: Marketing
deliveries
• Objective of the campaign is to enhance the sale of organic food
products.
• The aim of Tesco is to increase the brand awareness and
favorability of the products.
• Various strategies can be used by Tesco to implement the
marketing campaign among customers.
• Communication strategy would be effective in this manner.

Strategies for marketing campaign
• Online PR-
 The product would be promoted by media alerting, brand protection, and
community participation.
• Offline communication-
 In this medium, word-of-mouth, packaging, and exhibitions would be
used.
• Social media marketing-
 Tesco would manage social presence, and take audience feedback related
to product on social media channels.
• Interactive ads-
 Behavioral targeting would be done by site-specific media and various
social media channels.

Launch Stages
• Idea- Includes ideas for product development of organic food products.
• Research- Includes market research and analysis of consumers’ requirements related
to organic food.
• Develop- Produce the products based on the consumers requirements.
• Testing- Distribute some of the samples among customers to test the product quality
• Introduction- The products in market after analyzing the responses of customers.